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Based on the following information about Bank B, compute the return on equity (ROE): Bank B has net profit after taxes of $1 million and

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Based on the following information about Bank B, compute the return on equity (ROE): Bank B has net profit after taxes of $1 million and the following balance sheet: Bank Balance Sheet in millions) Assets Reserves $8 Loans $50 Securities $22 Liabilities and Capital Deposits $80 Borrowings $2 Bank Capital $8 O 10.50% O 10.00% 12.00% O 12.5%

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